answersLogoWhite

0

It's a fraudulent investment scheme that works on a "pyramid concept" where the initial investers are paid abnormally high returns on their investment from money received from subsequent investors. With those returns providing "legitimacy" to the investment - the "schemer" can use that documented information to bait people with bigger bucks into the scheme. Because there is not an acutal investment in a company or other entity to generate money - the scheme will cave leaving those investors S.O.L. and the "schemer" who with any luck (on his part) has probably already left the country and has a numbered bank account in the Caymans! Watch the national news. There's a big one under investigation right now.

User Avatar

Wiki User

16y ago

What else can I help you with?